I work in an IT company under the HR Department. The management has decided to issue a new appointment letter to every employee under another company. For example, all employees of X, Y, and Z are appointed under X company. There are also other employees under Y and Z companies. The X company is going to be abolished, and some employees will be under Y, while some will be under Z company. Should I issue new appointment letters to all the employees? What will be the right way to solve the problem? Please suggest to me.
From Bangladesh, Dhaka
Acknowledge(0)
Amend(0)
From Bangladesh, Dhaka
Acknowledge(0)Amend(0)
Please provide additional information, such as the age of your company X and its employees, the reason for the closure of company X, whether Y and Z companies are affiliated with company X, and the statutory regulations under which company X operates or is registered with PF, ESIC, etc.
From India, Ahmadabad
Acknowledge(0)Amend(0)
747From India, Ahmadabad
Acknowledge(0)Amend(0)
The services can be taken over from X company with continuity of service and the same terms and conditions. However, you can also consider offering a full and final settlement in X company and then issuing a fresh appointment in another company. For this, you should request the employee to submit an application for employment to the new company, clearly stating that they have received their full and final settlement from the previous company.
Lexlabour.com
From India, Delhi
Acknowledge(0)Amend(0)
Lexlabour.com
From India, Delhi
Acknowledge(0)Amend(0)
Dear Saji,
Thank you for your reply and query. The company is 8 years old. However, in the last two years, the business has expanded, and 95% of the employees have been working here for 1 to 2 years. Company X is going to be abolished because the government will not select it for various projects. Company X is solely involved in government work. Y and Z are sister concerns of X.
Best Regards,
Kamrul
From Bangladesh, Dhaka
Acknowledge(0)Amend(0)
Thank you for your reply and query. The company is 8 years old. However, in the last two years, the business has expanded, and 95% of the employees have been working here for 1 to 2 years. Company X is going to be abolished because the government will not select it for various projects. Company X is solely involved in government work. Y and Z are sister concerns of X.
Best Regards,
Kamrul
From Bangladesh, Dhaka
Acknowledge(0)Amend(0)
You mentioned that 95% of the employees are 1 or 2 years old, indicating that the remaining 5% have been with the company for over 2 years. Since Company X is 8 years old, all statutory requirements like PF, ESIC, POB, Gratuity, MB Act, etc., are applicable. Therefore, it is advisable to merge Company X with Company Y or Z or take over the company with all dues applicable for employee benefits. You can also transfer all employees to the new company without affecting their privileges or statutory dues.
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
To the best of my knowledge if merger is not happening then a transfer letter, If the merger is happening then a fresh appointment letter with detailed terms and conditions.
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
Dear Saji,
Your suggestion helps me a lot. A merger is happening, and I am very close to reaching a decision. When I am issuing a fresh appointment letter, should I copy the previous appointment letter following the same terms and conditions and date? Should I change the various types of letters issued to employees from time to time, for example, an increment letter, promotion letter, etc.?
Thanks,
Kamrul
From Bangladesh, Dhaka
Acknowledge(0)Amend(0)
Your suggestion helps me a lot. A merger is happening, and I am very close to reaching a decision. When I am issuing a fresh appointment letter, should I copy the previous appointment letter following the same terms and conditions and date? Should I change the various types of letters issued to employees from time to time, for example, an increment letter, promotion letter, etc.?
Thanks,
Kamrul
From Bangladesh, Dhaka
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Appointment Letter to an Employee for fixed period.doc